Opportunity day 4Q19 1
Agenda Business Overview Business Highlights and Direction Operating Results for 4Q19 2
FSMART Overview: New High Net Profit with Strong Balance Sheet Year 2016 2017 2018 2019 Key Information • Registered Capital Bt400mn (800 Million Shares) Revenue (Bt mn) 2,245 3,105 3,339 3,147 Bt5,568mn or Bt6.90 per Share • Market Capitalization Net Profit (Bt mn) 420 543 583 584 (As of March 3, 2020) • EPS 0.53 0.68 0.74 0.75 PE Ratio 9.13 (As of March 3, 2020) IBD/E 0.77 1.13 0.99 0.70 • CGR 2019 • Dividend Policy: Not Less than 40% Net Profit Dividend & Yield Shareholding Structure (As of Aug 22, 2019) 10.6% 10.3% 12.0% 0.7 • Major Shareholders FORTH 49.42% 0.6 10.0% 0.5 8.0% Amatanon Family 6.67% 0.4 6.0% 0.3 3.1% FSMART (Treasury Stock) 2.50% 4.0% 2.2% 0.2 2.0% Funds (Foreign/Local) 1.74% 0.1 0.42 0.55 0.62 0.66 0.0% 0 • Free Float 39.11% 2016 2017 2018 2019 2016 2017 2018 2019 Dividend per Share Dividend Yield • Dividend Yield Based on the Closing Price as of the Performance Period of Dividend Declaration 3
FSMART Is a Platform Delivering Convenience Customers Service Operators Use services Provide services at Boonterm Kiosks to Boonterm Kiosks Pay service charge Pay commission to FSMART to FSMART 21 Million Active Subscribers 1.9 Million Transactions per Day Boonterm Kiosks A Platform to Connect Customers and Service Operators with Total of 130,481 Boonterm Kiosks owned by FSMART As of Dec 2019 4
Comprehensive Range of Services at the Kiosk • 6 New Services SCB, BAAC, Air-Pay, BMTA, AXA, Myanmar Hit Song 84 8 13 15 1 10 1 6 20 6 4 Bill Payment VAS Others 4% 2% 1% E-Wallet 8% Mobile Top Up 64% Money Tranfer 21% As of Dec 2019 5
The Undisputed Leader in Coverage and Number of Service Points • Over 85% of Boonterm kiosks is outside Bangkok Metropolitan 29 17 21,808 38,163 17 22,561 10 13,293 14 13 18,367 16,289 Total 130,481 Kiosks Note: Number of Service Points as of 2019 – ATM & Bank’s Electronic Machine (57,554), 7 -11(10,988), Banks Branches (6,729), and Thailand Post (1,278) As of Dec 2019 6
Deep Penetration to the Grassroots Level • Over 75% of Boonterm kiosks Locates at Mom and Pop Shop and Residence Convenience Store 13,570 Office Building 3,784 Service Business Area 3,001 Residence 30,794 Educational Institution 1,827 Petrol Station 1,566 Temple 1,304 Market 1,305 Mom and Pop Shop Department 71,243 Store 1,044 Government Transportation Office 652 Station 391 As of Dec 2019 7
Sustainable and Recurring Business Model Revenue Sharing FSMART AGENT Commission from Operators Service Charge from Customers • • Listed Company 170 Agents, 69 Partners • • Provide superior hardware Identify best locations • and IT services Manage daily groundwork operation 8
Over 51 Million “Cash Society” People to Serve • Thailand Population: 17 Million Cashless Society People vs 51 Million Cash Society People • 5% p.a. Growth Rate in Both Revenue and Saving Account Numbers Main Customers – 21 mn People • 9 mn People: Rev/mth < Bt9,400 with Saving < Bt3,200 • 12 mn People: Rev/mth < Bt6,900 with Saving < Bt500 Cashless Society – 17 mn People (Higher Revenue and Saving) Secondary Customers – 30 mn People • Rev/mth < Bt3,700 with No Saving 9
Agenda Business Overview Business Highlights and Direction Operating Results for 4Q19 10
Undisputed Number 1 Automated Service Platform Operator in Thailand 170 Average Agents 1.9 Million and 21 69 Transactions per Day Million Total Transaction (58 Baht/Transaction) Partners Active Value in FY2019 10 Subscribers 40,496 Average Categories Total of Million Baht 70,307 Cans 84 130,481 per Day Services Boonterm Kiosks with 3,497 3 Major Mobile Vending Machines Operators and 6 Banks 11
2019 New Services: Adding 3 Banks, Personal Loan, and Fresh Coffee Machine Banking Agents Now , Banking Agents for 6 Banks Personal Loan Fresh Coffee Machine New Services 12
FSMART’s New Vision & Mission 13
The New S-Curve: Strengthen Core Business while Leverage Leading Position to New Opportunities 3. Distribution Platform 1. Online Top-up & Payment 2. Banking Agent & Lending Business Business Business Vending Business Adding banks to the ecosystem Adding Services (7,000 Locations in 2020) e-KYC SIM Card Distributors Petrol Kiosk (2,000 Location Management Deposit and Withdrawal Locations in 2020) Lending (Bt500-800mn Loan in 2020) EV Charger Station Product Distribution 14
2020 Revenue Expected to grow 4-6% by Adding Kiosk and Revenue from Banking Agent and Lending Business 4,000-6,000 Units Increase • Investment Bt100-200mn • All kiosks and machines 134,000 132,000 130,053 130,481 124,653 can provide top-up & payment service No. of Kiosks and Vending Machine No. Of Kiosks 10,000 7,000 3,497 1,957 1,582 No. Of Vending Machine 44,500 42,500 41,980 40,496 4,000 45,000 4-6% Growth from 36,175 3,500 • Banking Agent (6+ Banks) 35,000 3,469 Top up • Lending Business (Bt500- 3,000 3,339 3,304 3,147 3,105 800 mn Loan Amount) 2,500 25,000 and 2,000 15,000 Revenue 1,500 Revenue 1,000 5,000 2017 2018 2019 2020F 2021F Top up 15
Online Top-up & Payment Business 16
Quarterly Total Transaction Value Bt9,786 mn in 4Q19 Bt mn Avg. Bt106.37 mn per day Actual 12,000 Forecast Actual in 4Q19 10,000 ARPU > 6M Operating Kiosks 8,000 6,000 4,000 2,000 - 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 2014 2015 2016 2017 2018 2019 2020 24,859 65,867 92,082 124,563 130,053 130,481 132,000 Kiosks Kiosks Kiosks Kiosks Kiosks Kiosks Kiosks(Target) 2016 2017 2019 2015 2018 2020(F) 2014 17 17
Value Share and Leading Position Maintained despite Growing in Competitions Prepaid Bt128,194mn Bt124,260mn Market Value Mobile Banking Mobile Banking Kiosk Kiosk and App and App 27% 26% 39% Value Share 48% 2018 2019 by Channels 26% 34% Others Others Total Kiosk 242,093 Kiosks 246,374 Kiosks Numbers Boonterm Boonterm Number of 46% 47% 2018 2019 Kiosk Share 54% 53% Others Others Source: Mobile Operators Public Information (MD&A), Industry Information, and FSMART Analysis 18
New Services AirPay e-Wallet Myanmar Hit Song BMTA Personal Insurance 19
Mobile Top-up Campaign to Promote Payment at Boonterm Kiosk 20
New Service – SIM Card Distributor SIM Card Distributor for AIS Total 961 Kiosks with SIM Card Distributing System and e-KYC Service at the end of Dec 2019 (Target of1,000 kiosks) “Lucky Number” SIM Card to Start in 1Q20 21
Depreciation Saving Expected Going onward Accumulated Fully Depreciated Kiosks Number 28,615 19,042 12,488 5,063 516 2017 2018 2019 2020F 2021F 24.4 28.1 27.3 Depreciation Costs Saving (Bt mn) 22
Banking Agent & Lending Business 23
Money Transfer Transaction Number Expect to Grow Significantly in 2020 1,159,351 Transactions per Month in 4Q19 2019: 25.3% YoY 17.9% QoQ (Total 6 Banks) Bt mn Transactions 9.2% YoY 6.8% QoQ (KTB&KBANK&BAY) 5,000 1,800,000 1,600,000 4,000 1,400,000 1,159,351 1,200,000 3,000 954,173 925,191 1,000,000 821,548 983,456 723,983 975,436 800,000 891,968 2,000 846,320 600,000 439,968 602,638 400,000 1,000 166,810 318,226 200,000 40,045 68,332 0 0 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Actual Transfer Value Monthly Transaction Number at the End of Quarter Actual Transfer Value in 4Q19 Forecast Transfer Value 24
Add at Least 1 More Bank to Maintain Leading Banking Agent Position and Add More Services to Increase Transaction Numbers by 40-45% Transaction Number 2016 - 2018 40-45% 2019 11.9 mn 1,159,351 • To add at least 1 more bank • To add withdrawal and e-KYC 2020 BANK service to become full-service banking agent and increase number of transactions 2019 2020F 25
Lending Business to Grow to Bt500-800mn Credit Line in 2020 Loan Amount (Bt mn) Personal Loan Target Customers (Phase 1) • Interest Rate 8-28% • NPL < 3% 500-800 89 78,000+ Low Risk Accounts due to Business Relationship with FSMART 2019 2020F 26
Distribution Platform Business 27
Forth Vending (FVD) Shareholders and Business Model Location 28
Quarterly Beverage Sales Growing Continuously 3,497 Vending Machine 43.83% YoY Million Cans Bt mn per Month Beverage Sales Bt82.12mn 9.57% QoQ per Quarter 120.0 3.0 Beverage Sales (Bt mn) 100.0 Actual Beverage Sales (Bt mn) in 4Q19 2.2 Forecast Beverage Sales (Bt mn) 2.0 1.9 80.0 No. of Beverage Sales (Cans) 2.0 1.7 * Average Price 13-15 Baht/Can 1.6 1.4 60.0 1.3 1.2 1.1 1.1 40.0 1.0 0.8 0.5 20.0 .0 0.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1,582 1,908 7,000 3,497 Vending Machine Vending Machine Vending Machine (Target) Vending Machine 2019 2017 2018 2020(F) 29
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